Kbr, Inc. · NYSE:KBR

Kbr — Cowen 41st Annual Aerospace/Defense & Industrials Conference (February 2020)

16 slides from Kbr's conference presentation, Feb 13, 2020

  1. Slide 1: Cowen 41st Annual Aerospace/Defense & Industrials Conference

    Cowen 41st Annual Aerospace/Defense & Industrials Conference February 13, 2020 The future, designed and delivered. ©2019 KBR Inc. All Rights Reserved.

  2. Slide 2: Stuart Bradie and Mark Sopp

    Stuart Bradie President & Chief Executive Officer Mark Sopp Executive Vice President and CFO Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  3. Slide 3: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements regarding our plans, objectives, goals, strategies, future events, future financial performance and backlog information and other information that is not historical. When used in this presentation, the words “estimates,

  4. Slide 4: Enduring, Diverse Contracts; Sustainable Revenue and EBITDA Growth

    Enduring, Diverse Contracts in Healthy End Markets Sustainability Sustainable Differentiated Revenue and EBITDA Growth Capital Strong Free Deployment Cash Flexibility Generation Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  5. Slide 5: Government Solutions

    Government Solutions Critical Differentiators Diverse Customer Base Diverse Funding Streams ~$4B  Deep domain expertise  U.S. Department of  International 2019  Mission critical services Defense  RDT&E Revenue (est.)  Large scale & complex  U.K. Ministry of Defence  O&M environments  NASA /

  6. Slide 6: Technology Solutions

    Technology Solutions Expand Technology Portfolio Increase Scope Offerings Expand Geographically ~$0.4B  Clean, sustainable  Licensing & engineering  Global presence 2019 solutions Revenue  Proprietary equipment  Prioritized sales efforts (est.)  Petrochemical & ethylene  Catalysts and solvent

  7. Slide 7: Energy Solutions

    Energy Solutions Full Life Cycle Capabilities Expanded Services Portfolio LNG Experts ~$1.3B  Design and concept  Large-scale, complex  Recognized leader 2019  Pre-FEED and FEED program management  Access to all leading Revenue and EPC LNG technologies (est.)  Engineering, procurement,  Indus

  8. Slide 8: Long-Term Targets | Quality catalysts for profitable growth

    Long-Term Targets | Quality catalysts for profitable growth Market Dynamics Catalysts for Profitable Growth 10-14% CAGR LNG mid-/long-term shortfall, over- Strong BTB in 2019 sustains growth beyond KBR Revenue Growth supply in the short term 2020 2019 – 2022 from 2018 actuals Highly fragmented servi

  9. Slide 9: Healthy Growth Outlook

    Healthy Growth Outlook $164 billion 10-14% KBR Pursuit Pipeline Revenue CAGR LNG: ~8% December 31, 2019 thru 2022 Government New business: ~25% Hydrocarbons Contracting Our robust pursuit pipeline affords significant growth opportunities. $57B $107B $24 $26 Today’s book of business: ~67% $24 $45 Our

  10. Slide 10: Capital Allocation | Executing our deployment strategy

    Capital Allocation | Executing our deployment strategy Capital Deployment  Completed amendment of our credit agreement in February 2020 Priorities  Reflects growth and improved credit rating / profile  Enables greater capital deployment flexibility  100 bps reduction in borrowing cost Fund Organ

  11. Slide 11: 2019 Full-Year Guidance and Long-Term Targets

    2019 Full-Year Guidance and Long-Term Targets FY 2019 Guidance (raised) 14-18% Base GAAP EPS $1.36 - $1.46 Adjusted EPS CAGR Adjusted EPS $1.64 - $1.74 Operating Cash Flow $200M - $225M 2019-2022 long-term targets Revenue CAGR, organic1 10-14% EBITDA margin Upper single % Adjusted EPS CAGR1 14-18% O

  12. Slide 12: Highlights | Nine months ended September 30, 2019

    Highlights | Nine months ended September 30, 2019 $ in millions, except EPS Revenues Adjusted EBITDA1 Adjusted EBITDA %  Growth fueled by contributions from all $354 segments $4,187 8.5% 8.5% $303 ‐ 17% top line revenue growth $3,583 • 21% growth in GS • 31% growth in TS • 3% growth in ES ‐ Adjuste

  13. Slide 13: Consistent Backlog Growth

    Consistent Backlog Growth Trailing 12 months book-to-bill1 1.5x 1.2x 1.2x 1.3x 1.1x 1.1x  Consistent increase in TTM book-to-bill 0.9x 1.4x 1.0x 1.6x 0.9x 1.5x 2.1x 0.8x rd Quarterly Book-to-Bill TTM Book-to-Bill  2.1x KBR book-to-bill1 during the 3 quarter ‐ Government Solutions 1.5x ‐ Technology

  14. Slide 14: Enduring, Diverse Contracts; Sustainable Revenue and EBITDA Growth

    Enduring, Diverse Contracts in Healthy End Markets Sustainability Sustainable Differentiated Revenue and EBITDA Growth Capital Strong Free Deployment Cash Flexibility Generation Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  15. Slide 15: Appendices

    APPENDICES Proud history, bright future. ©2019 KBR Inc. All Rights Reserved.

  16. Slide 16: Non-GAAP Reconciliations: Adjusted EPS and Adjusted EBITDA

    Non-GAAP Reconciliations: Adjusted EPS and Adjusted EBITDA FY 2018 FY 2019 ($ in millions) FY 2018 FY 2019 Diluted GAAP EPS $ 1.66 $ 1.01 Net Income Attributable To KBR $ 234 $ 144 Add Back: Add Back: Legacy Legal Fees $ 0.04 $ 0.04 Interest expense $ 43 $ 76 Non-cash imputed interest on conversion

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